Does thinking of money makes us less helpful and more hard-working

So it seems, at least according to the recently published article by Kathleen Vohs, Nicole L. Mead, and Miranda R. Goode (2008) Merely Activating the Concept of Money Changes Personal and Interpersonal Behavior , Current Directions in Psychological Science , Volume 17 Issue 3, Pages 208 – 212).

Here is the abstract:

Money plays a significant role in people’s lives, and yet little experimental attention has been given to the psychological underpinnings of money. We systematically varied whether and to what extent the concept of money was activated in participants’ minds using methods that minimized participants’ conscious awareness of the money cues. On the one hand, participants reminded of money were less helpful than were participants not reminded of money, and they also preferred solitary activities and less physical intimacy. On the other hand, reminders of money prompted participants to work harder on challenging tasks and led to desires to take on more work as compared to participants not reminded of money. In short, even subtle reminders of money elicit big changes in human behavior.”

The concept of money was activated in the participants via four different manipulations. The first had participants play monopoly and being given at the end of the game different amounts of money “for later” before moving to another task. The second manipulation asked participants to imagine life with either abundant or limited finances. In the third manipulation participants had to organize phrases that were or were not related to money. The fourth and last manipulation made participants sit near images of cash or neutral images. The authors found that all of these manipulations had similar effects.

The authors underline that the emotional states reported by participants did not seem to be affected by whether they were reminded of money or not. This suggests that the results are unlikely to depend on emotional impacts of money on making participants less trustful, more anxious, or prideful. The authors believe that the explanation does not lie in money making people more selfish or greedy. In fact, exposure to money clues did not make participants more likely to ask for help when given a tough assignment nor more likely to reject more work than was necessary.

The authors conclude:

We are eager to explore the idea that money leads to a perspective on the world that emphasizes inputs and outputs with an expectation of equity (cf. Fiske, 1991)—a perspective that would emphasize performance and, consequently, may harm interpersonal sensitivity.” (p. 211).

See also the earlier article “The Psychological Consequences of Money,” Kathleen D. Vohs, Nicole Mead, and Miranda Goode, Science (2006). Nov. 17, 2006.

Pointer by Greg Mankiw and comment by Peter Singer.

Ben Friedman reviews Nudge

Ben Friedman reviews Nudge by Richard Thaler and Cass Sunstein on the New York Times. Pointer by Greg Mankiw

Workshop for teaching assistants

I am organizing a three-hour workshop for teaching assistants. The workshop is meant to be their first introduction to teaching. If anyone has organized anything similar, I would love to exchange ideas. Below is a list of links for the workshops. If anyone has comments, suggestions, etc. they are very welcome!

Useful links - this list is compiled having in mind parsimony assuming that TAs will have little time and find a short list more useful.

I am not aware of any other handbooks for teaching economics, that are freely available on the internet. There are however several handbooks for teaching assistants.

Also excellent is the site

and the

Discussion lists

  • Tch-econ discussion list From the description of the discussion list: “This is a place to discuss ideas related to the teaching of economics. We particularly concentrate on undergraduate university-level teaching, but do occasionally foray into graduate or secondary-school teaching. This is also a place to make contacts and form collaborative teams to work on projects related to the scholarship of teaching and to multi-campus collaborative efforts. “

Peer-reviewed journals on economic education

How can behavioural economics improve policies affecting consumers?

How can behavioural economics improve policies affecting consumers?
in Brussels,Belgium 28. November 2008
Further information at: http://ec.europa.eu/consumers/dyna/conference/index.cfm

Programme http://ec.europa.eu/consumers/dyna/conference/programme_en.htm

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